De-escalation of a frightening conflict between the Rapid Support Force’s 100,00 strong militia group and the Sudanese Armed Forces will see Perseus Mining’s employees and contractors return to its Meyas Sand Gold Project in northern Sudan.
The rogue militia formerly under the control of the Sudanese government had been a tool for crushing pro-democracy demonstrations after the 2019 coup d’état which deposed President Omar al-Bashir, committing atrocities that qualify as crimes against humanity.
The paramilitary group had formerly been used to seize control of the nation’s gold mines, which led the group’s Commander, Mohamed Hamdan Dagalo, known as just “Hemetti”, to become one of the wealthiest men in Sudan.
Sudanese gold production has been increasing over the years, richly endowed with gold deposits spread across various regions, which has it consistently positioned as one of Africa’s leading producers.
And Meyas Sand is one of the more lucrative assets, with a 200,000-ounce yearly production capacity and a 13-year mine life from 3.34 million ounces in measured and indicated resources.
A risk Perseus has deemed worth it, and after monitoring the situation alongside a team of international security specialists, will secure the site with forces led by the company’s in-house personnel.
The force will include representatives of the Sudanese Mining Police, allowing employees and contractors access to the site to complete works, with confirmatory drilling activities to restart by the end of the month.
Perseus Managing Director and Chief Executive, Jeff Quartermaine, said the decision to withdraw personnel was taken with safety and security at the fore.
Thankfully, there have been no reported incidents within the 250,000 square kilometres surrounding Meyas Sand.
With further assessment of the situation, it appears that the perceived immediate threat has abated and we are comfortable with the prospects of returning to work at the Meyas Sand site without undue risk. We are however closely monitoring the situation and remain prepared and equipped to act if necessary,” Mr Quartermaine said.
“Our Sudanese exploration and pre-development assets currently comprise a relatively small part of our asset portfolio and the recent events in Sudan have had no impact on our gold production activities that take place in West Africa, specifically, Ghana and Cote d’Ivoire and currently deliver more than 500,000 ounces of gold per year at an AISC of less than US$1,000 per ounce,” he added.
“In the first two months of the June 2023 quarter, Perseus’s operations have continued to perform strongly, strengthening our Balance Sheet and placing the Company in a position to continue to prudently grow our business and deliver material benefits to all of our stakeholders.”
Perseus had invested US$25 million preparing for a final investment decision on Meyas Sand earmarked for the second half of this year, a decision now deferred for the foreseeable future.
